- Cardano gained by 7.4% over a single 48-hour period
- Spot CVD and the On-Balance Volume indicator both flashed bearish signals
Cardano [ADA] was on a downtrend on the daily chart, even though it bounced by 7.4% from Wednesday’s lows. In fact, technical analysis revealed that market bulls have an uphill fight ahead of them to reverse this trend.
Bitcoin [BTC] also gained by 8% from its Wednesday lows and was the major cause of the market-wide rally. Despite its increased public acceptance, however, Bitcoin Core developer Matt Corallo claimed that “it’s hard not to see a bleak vision of the future.” He talked about how Bitcoin is veering away from being a tool of freedom, and away from the original vision of Bitcoiners.
Cardano’s price action also appears bleak
Source: ADA/USDT on TradingView
On the daily chart, the latest price bounce hardly registered against the sea of losses since March. The RSI was at 46.8 and indicated neutral momentum, but the price action signalled a strong downtrend with a series of lower highs and lower lows.
The OBV was unable to climb above a local resistance level. This underlined the selling pressure behind ADA. However, Cardano’s price prediction was bearish for another reason too.
Two imbalances on the daily timeframes are highlighted in white on the chart above. The lower one at $0.48-$0.5 has not been retested yet, but could rebuff bulls in the coming days.
Sentiment not bullish yet
The Open Interest behind Cardano has trended higher in May too, but was not particularly strong during the most recent price hike. This indicated that speculators have been wary of going long on ADA.
Read Cardano’s [ADA] Price Prediction 2024-25
Simply put, Cardano’s price prediction remains bearish, with the 23.6% extension level at $0.3 being the next target. This expectation was reinforced by the sustained downtrend of the spot CVD since it highlighted selling pressure in the market.
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.